Annual General Meeting (AGM)
What is an Annual General Meeting (AGM)?
An Annual General Meeting (AGM) is a formal yearly meeting held by a company to present financial statements, review performance, and allow shareholders to vote on key matters. It’s a way to ensure accountability and transparency between the company’s management and its shareholders.
While AGMs are a legal requirement for public companies in South Africa, private companies (Pty Ltd) are generally not required to hold AGMs unless their Memorandum of Incorporation (MOI) specifically states otherwise.
What happens at an AGM?
At an AGM, the company typically:
- Presents the annual financial statements
- Reports on company performance and strategy
- Elects or reappoints directors or auditors
- Allows shareholders to ask questions and vote on key decisions
In public companies, this is also where the board reports to shareholders and discusses executive remuneration, dividends, and corporate governance issues.
Private companies that choose to hold AGMs may use the meeting to formalise internal decisions and record shareholder approval.
Does my business need to hold an AGM?
- Public companies: AGMs are mandatory and must be held within six months of the end of the financial year.
- Private companies (Pty Ltd): Not required by law to hold AGMs unless their MOI requires it.
Many smaller companies opt to make decisions via written resolutions (round-robin) instead of formal meetings. However, holding an AGM can still be good practice, especially if the company has multiple shareholders or external investors.
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